CRH blamed the strong euro and unseasonally wet weather in the United States for a disappointing start to the year that saw pre tax profits fall 18 per cent to €161 million for the first six months of 2003.
The construction conglomerate confirmed today its US operations were hit by the impact of a 19 per cent weakening of the average euro/dollar exchange rate. Overall, the currency translation effect knocked €10 million off pre-tax profits.
CRH was also hit by very wet start to the year in the key US market - which delayed building projects. The products and distribution division reported a 30 per cent fall in profits to €99 million.
Mr Liam O'Mahony, chief executive of CRH, said the half year results were in line with previous guidance of around €160 million.
The second half of the year is traditionally more profitable for CRH as building projects are completed and paid for, although wet weather continued to hamper the US businesses in July and early August.
Nevertheless CRH said full year profits would be ahead of last year despite a negative currency effect estimated at €77 million for the full year.
CRH spent €577 million on 20 acquisitions in the first six months of the year. Since then it has also agreed to acquire Dutch cement company Cementbouw's distribution and building products operations for €646 million.
Shares in CRH fell by 38 cents to euro16.70 in late morning trading despite positive reaction to the results from analysts. Many investors took the opportunity to cash in profits on the shares which after a recent rally are beginning to look expensive.
CRH shares have risen by around 50 per cent in the past six months outperforming the European market by 29 per cent.
The shares now trade on a price a PE of 13.5 times 2003 earnings against an average of 11.2 among of its peers.
CRH will pay an interim dividend of 8.20 cent per share, an increase of 10.4 per cent on the 2002 interim dividend of 7.43 cent.